The "Xanadu"

• Judgment Date: 28 October 1997
• Date: 28 October 1997
• Docket Number: Admiralty in Rem No 139 of 1996
• Court: High Court (Singapore)

The “Xanadu”

[1997] SGHC 271

Lai Kew Chai J

Admiralty in Rem No 139 of 1996 (Registrar's Appeal No 408 of 1996)

High Court

Arbitration–Stay of court proceedings–Mandatory stay under International Arbitration Act–Imposition of conditions for stay–Factors to be considered in imposing conditions

The defendants applied for a stay of the plaintiffs' action on the grounds that the contracts of carriage upon which the plaintiffs' claim was brought provided for the claim to be brought by way of arbitration in London. The stay was granted on condition, inter alia, that the defendants waived their time-bar defence in the arbitral proceedings. The defendants appealed against this condition.

Held, dismissing the appeal:

(1) Section 6 (2) of the International Arbitration Act (Cap 143A, 1995 Rev Ed) empowered the court to stay proceedings upon such terms and conditions as it thought fit. The court was entitled to impose terms and conditions as appeared reasonable or required by the ties of justice: at [6].

(2) The circumstances of the case called for the condition in question. First, there was sufficient ambiguity whether the relevant bill of lading had identified the arbitration clause invoked. Second, the defendants waited until after the expiry of the time-bar before they filed their application to stay the proceedings. Third, if the condition was not imposed, and in the light of the amount of their claim, the plaintiffs would suffer undue and disproportionate hardship: at [6].

International Arbitration Act (Cap 143A, 1995 Rev Ed) ss 6 (1), 6 (2), 7

Lee Yean-Lin and Alexander Ee (Rajah & Tann) for the appellants/plaintiffs

Kenneth Lie (Ang & Partners) for the respondents/defendants.

Lai Kew Chai J

1 The defendants in these admiralty proceedings applied for a stay of the plaintiffs' action on the grounds that the contracts of carriage upon which the plaintiffs' claim was brought expressly provided for the claim to be brought by way of arbitration in London.

2 On 20 November 1996 the learned assistant registrar made the following orders:

(a) the action be stayed on condition that the defendants waive their time-bar defence in the proposed arbitral proceedings subject to the plaintiffs commencing the said arbitration proceedings within 14 days thereof;

(b) security provided pursuant to s 7 of the International Arbitration Act (Cap 143A, 1995 Ed) (“the Act”) to be retained as security for the arbitration proceedings in...